Securities (Tables)

9 Months Ended

Sep. 30, 2018

Securities available for sale consist of the following:

	Amortized		Unrealized
	Cost		Gains		Losses		Fair Value
	(In thousands)
September 30, 2018
U.S. agency	$	20,769	$	-	$	346	$	20,423
U.S. agency residential mortgage-backed		126,851		802		2,592		125,061
U.S. agency commercial mortgage-backed		6,039		-		224		5,815
Private label mortgage-backed		29,340		369		736		28,973
Other asset backed		78,567		147		188		78,526
Obligations of states and political subdivisions		143,138		219		3,703		139,654
Corporate		35,017		65		512		34,570
Trust preferred		1,963		-		38		1,925
Foreign government		2,060		-		50		2,010
Total	$	443,744	$	1,602	$	8,389	$	436,957

December 31, 2017
U.S. Treasury	$	898	$	-	$	-	$	898
U.S. agency		25,667		82		67		25,682
U.S. agency residential mortgage-backed		137,785		1,116		983		137,918
U.S. agency commercial mortgage-backed		9,894		36		170		9,760
Private label mortgage-backed		29,011		428		330		29,109
Other asset backed		93,811		202		115		93,898
Obligations of states and political subdivisions		174,073		755		1,883		172,945
Corporate		47,365		578		90		47,853
Trust preferred		2,929		-		127		2,802
Foreign government		2,087		-		27		2,060
Total	$	523,520	$	3,197	$	3,792	$	522,925

Investments in a Continuous Unrealized Loss Position

Our investments’ gross unrealized losses and fair values aggregated by investment type and length of time that individual securities have been at a continuous unrealized loss position follows:

	Less Than Twelve Months				Twelve Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In thousands)

September 30, 2018
U.S. agency	$	11,938	$	239	$	8,485	$	107	$	20,423	$	346
U.S. agency residential mortgage-backed		28,672		765		40,857		1,827		69,529		2,592
U.S. agency commercial mortgage-backed		1,358		12		4,391		212		5,749		224
Private label mortgage- backed		10,209		295		8,473		441		18,682		736
Other asset backed		30,663		92		11,226		96		41,889		188
Obligations of states and political subdivisions		59,590		1,157		57,509		2,546		117,099		3,703
Corporate		20,853		361		5,726		151		26,579		512
Trust preferred		-		-		925		38		925		38
Foreign government		-		-		2,010		50		2,010		50
Total	$	163,283	$	2,921	$	139,602	$	5,468	$	302,885	$	8,389

December 31, 2017
U.S. agency	$	5,466	$	26	$	5,735	$	41	$	11,201	$	67
U.S. agency residential mortgage-backed		22,198		229		40,698		754		62,896		983
U.S. agency commercial mortgage-backed		2,181		34		3,994		136		6,175		170
Private label mortgage-backed		11,390		92		4,396		238		15,786		330
Other asset backed		20,352		40		16,648		75		37,000		115
Obligations of states and political subdivisions		76,574		936		28,246		947		104,820		1,883
Corporate		14,440		33		3,943		57		18,383		90
Trust preferred		-		-		2,802		127		2,802		127
Foreign government		489		10		1,571		17		2,060		27
Total	$	153,090	$	1,400	$	108,033	$	2,392	$	261,123	$	3,792

Private Label Mortgage Backed Securities Below Investment Grade

At September 30, 2018, three private label mortgage-backed securities had credit related OTTI and are summarized as follows:

	Senior Security		Super Senior Security		Senior Support Security		Total
	(In thousands)

Fair value	$	842	$	808	$	32	$	1,682
Amortized cost		698		633		-		1,331
Non-credit unrealized loss		-		-		-		-
Unrealized gain		144		175		32		351
Cumulative credit related OTTI		757		457		380		1,594

Credit Losses Recognized in Earnings on Securities Available for Sale

A roll forward of credit losses recognized in earnings on securities available for sale follows:

	Three months ended September 30,				Nine months ended September 30,
	2018		2017		2018		2017
	(In thousands)				(In thousands)
Balance at beginning of period	$	1,594	$	1,594	$	1,594	$	1,594
Additions to credit losses on securities for which no previous OTTI was recognized		-		-		-		-
Increases to credit losses on securities for which OTTI was previously recognized		-		-		-		-
Balance at end of period	$	1,594	$	1,594	$	1,594	$	1,594

Amortized Cost and Fair Value of Securities Available for Sale by Contractual Maturity

The amortized cost and fair value of securities available for sale at September 30, 2018, by contractual maturity, follow:

	Amortized Cost		Fair Value
	(In thousands)
Maturing within one year	$	14,513	$	14,494
Maturing after one year but within five years		79,683		78,634
Maturing after five years but within ten years		62,609		60,979
Maturing after ten years		46,142		44,475
		202,947		198,582
U.S. agency residential mortgage-backed		126,851		125,061
U.S. agency commercial mortgage-backed		6,039		5,815
Private label mortgage-backed		29,340		28,973
Other asset backed		78,567		78,526
Total	$	443,744	$	436,957

Gains and Losses Realized on Sale of Securities Available for Sale

A summary of proceeds from the sale of securities available for sale and gains and losses for the nine month periods ending September 30, follows:

			Realized
	Proceeds (1)		Gains (2)		Losses
	(In thousands)
2018	$	31,445	$	81	$	126
2017		9,594		125		-

(1)	2017 includes $0.760 million for trades that did not settle until after September 30, 2017.

(2)	2018 excludes a $0.144 million gain on the sale of 1,000 VISA Class B shares.